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Friday, 22 November 2013

Finally, Making Money With Market Profile (TM)

Finally, Making Money With Market ProfileTM.
That's the title of the Book. As readers of this blog and students know, context can substantially improve profitability. Yes, you can be CP without context, or at least without structured context (there is always some form of context in our minds) but using MP greatly improves my performance. Its a bit frustrating I can't effectively wrap that context into an algo.

However, for both discretionary and hybrid traders, context can be a like a magnifying glass on profits if properly used.

A good example is today's Bund. The Bund was my main market when I was on the LIFFE floor as a local. While the German unification was under way, Bund trading was like money falling from the sky. You didn't even have to bend over to pick it up. You also didn't really have to be a good trader to make money, But if you were good then ,,,,,,,,,,

Anyway, enough of wishful thinking of the good old days. Splitting the Profile correctly is the key to getting the proper information from it. Then, using the EL pictures at those key points makes for a happy trader.

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NinjaTrader

Kinetick

About the Electronic Local

I have written this day trading blog since October 2009 when I started teach one of my daughters how to trade. I have recently released an eBook: Trading Order Flow in a Market Profile Context that shows my trading methodology using the latest technology.
I have also been involved in alogrithmic trading since the 1980s when I met both Bob Pardo and David Aronson, two of the most historically influential people in retail algo trading. I taught a course on algo trading a few years ago and have now re-invented how I create and trade algos with the latest technology incorporating order flow.

I have enough money to last me the rest of my life unless i buy something - Rodney Dangerfield

I'm teaching my youngest daughter to trade. She's a 25-year old IT professional who came to me a couple of months ago and said, "Dad, I want to learn to trade. I’m tired of working so hard making other people lots of money. Do you think I can do what you do?".

I've been a successful trader for over 30 years, yet I’ve always discouraged my kids from becoming traders. It's a hard way to make a consistent living unless you have strong discipline and focus. Then I thought, she has a career to fall back on if she doesn’t succeed, which often happens. Plus she was very insistent, (a good trait for a trader) so I said OK.

Was this a weak moment of a dad being wrapped around a daughter's finger?

Will I fail?

Will she fail?

So this blog will be our trading journey and journal. The good, bad and everything in between.

I'll start by posting a huge amount of trading and background information. So if you're following this blog start with the oldest posts.

As things get moving, I'll be adding questions, answers and comments. Twitter will provide Tweets of trading information and I'll even try videos to get the difficult trading concepts and ideas across.

We should end up with an all in one reference and "how to" of my trading methodology.

Tom

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Futures and forex trading contains substantial risk and is not for every investor. An investor couldpotentially lose all or more than the initial investment. Risk capital is money that can be lost withoutjeopardizing ones’ financial security or life style. Only risk capital should be used for trading and onlythose with sufficient risk capital should consider trading. Past performance is not necessarily indicative offuture results.

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